By Phil Boeyen, ShareChat Business News Editor
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Monday 1st October 2001 |
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Finance Minister Michael Cullen says Monday's exchange of letters between the Crown and Tranz Rail is a sign of the good progress being made in negotiations over the rail corridor.
As well as the purchase price Tranz Rail will receive a yearly fee of $2.85 million to provide train control and maintenance for a period of at least five years. The rail operator will also hold on to certain rights, including the ability to earn advertising revenue.
The agreement allows for Auckland region councils to be able to purchase Tranz Rail's existing Auckland commuter trains for $3 million.
"A deal on these terms will achieve the government's objectives. It provides Auckland with the rail corridors required for a rapid passenger transit system, and preserves the integrity of the rail network and the freight link to Northland," says Dr Cullen.
Tranz Rail chief, Michael Beard, says the government stepping in to help the Auckland Regional Council complete the transaction has enabled discussions to broaden beyond the Auckland metro corridor.
"For example, we have agreed to consider changes to Tranz Rail's master lease. This will assist Tranz Rail with other strategic initiatives.
The government says it expects the deal to be concluded by early December with settlement, including payment, soon after.
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